Daily Digest

Daily Digest 12/9 - The Great Re-Hypothecation Scandal, Big Oil Sees Energy Bonanza Ahead, CM And Macleod Talk Economy

Friday, December 9, 2011, 11:44 AM
  • Chris Martenson and Alasdair Macleod Talk About Peak Oil And The Economy
  • MF Global and the Great Re-Hypothecation Scandal
  • Not a Clue: What Happened to the MF Global Customers' $1.2 Billion?
  • Why The MF Global Collapse May Have "Apocalyptic" Consequences
  • We No Longer Have A Justice System In The U.S.
  • Mystery Company Is Rapidly Acquiring U.S. Gun and Ammo Manufacturers
  • Jon Stewart on Indefinite Detention of Americans
  • BP Accuses Halliburton of Destroying Evidence of its Involvement in the Gulf of Mexico Oil Spill
  • Big Oil Sees Energy Bonanza Ahead
  • Tepco May Dump Decontaminated Water Into Sea

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Economy

Chris Martenson and Alasdair Macleod Talk About Peak Oil And The Economy (adam)

Martenson explains that once spending programmes are implemented, it is very hard to cut them back again. We are now at a point in time where outstanding credit can’t be serviced leading to the need for monetisation by central banks and therefore inflation. Additionally, the depletion of resources will not allow “business as usual” when it comes to getting the economy back on track. Martenson foresees rising oil prices absent a sudden slow down in demand due to a recession. He also expects the world to fully recognise the implications of Peak Oil sometime between 2013 and 2014.

>MF Global and the Great Re-Hypothecation Scandal (Doug)

A legal loophole in international brokerage regulations means that few, if any, clients of MF Global are likely to get their money back. Although details of the drama are still unfolding, it appears that MF Global and some of its Wall Street counterparts have been actively and aggressively circumventing U.S. securities rules at the expense (quite literally) of their clients.

Not a Clue: What Happened to the MF Global Customers' $1.2 Billion? (June C.)

Jon Corzine said today that he does not know what happened to the missing $1.2 billion in customers' money.

If the CEO does not know, and if the regulators do not yet know, how can we possibly know?

Why The MF Global Collapse May Have "Apocalyptic" Consequences (kelvinator)

MF Global exposes the 2011 equivalent of the 2008 AIG: virtually unlimited leverage via the shadow banking system, in which there are practically no hard assets backing the infinite layers of debt created above, and which when finally unwound, will create a cataclysmic collapse of all financial institutions, where every bank is daisy-chained to each other courtesy of multiple layers of "hypothecation, and re-hypothecation."

We No Longer Have A Justice System In The U.S. (June C.)

This in turn means that it is impossible for you to engage in any sort of commercial transaction where performance cannot be verified before you hand over payment in full, because you have no means of compelling the other party to perform and no recourse of any sort to the law, nor do you have any expectation that someone who violates the law, irrespective of who it is, will be held to account.

Mystery Company Is Rapidly Acquiring U.S. Gun and Ammo Manufacturers (June C.)

One rumor that popped up was that global financier George Soros, historically an anti-gun advocate, was behind the moves, and that he was positioning the gun industry to reduce pro-gun lobbying efforts. This prompted the National Rifle Association to step in to assure American gun owners that this wasn’t a behind the scenes coup. “The owners and investors involved are strong supporters of the Second Amendment and are avid hunters and shooters,” the NRA said in a statement.

Jon Stewart on Indefinite Detention of Americans (June C.)

The Daily Show - Arrested Development

Energy

BP Accuses Halliburton of Destroying Evidence of its Involvement in the Gulf of Mexico Oil Spill (James S.)

Using in-house labs, samples of the cement used were produced in an environment that prevented third-party labs from conducting precise tests and allowed Halliburton to destroy any results the company felt would have been indicators of instability, according to BP. Demanding Halliburton's computer used in the modelling be investigated by a third-party forensic data recovery firm, BP hopes missing evidence can be recovered to prove otherwise.

Big Oil Sees Energy Bonanza Ahead (SolidSwede)

The world holds centuries of natural gas supply, enough for generations," said James Mulva, chief executive of ConocoPhillips, at the World Petroleum Congress on Tuesday. "We don't need any new miracles, the miracles have already occurred."

Environment

Tepco May Dump Decontaminated Water Into Sea (guardia)

"We would like to increase the number of tanks to accommodate the water but it will be difficult to do so indefinitely," Tepco spokesman Junichi Matsumoto told reporters. He said the plant was likely to reach its storage capacity of about 155,000 tons around March.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

11 Comments

saxplayer00o1's picture
saxplayer00o1
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Euro-zone economy may contract in 2012, ECB says

 

"European Union leaders agreed on the need for tougher fiscal regulation but not on the details of how and when to achieve it, after the European Central Bank dashed market expectations it would move forcefully to stem the euro area’s debt crisis.
Meeting under a pall of political and economic gloom, the assembled presidents and prime ministers also sought desperately Thursday to prevent their divisions over euro-zone regulation from leading to a potentially fatal breakup."

"The European Central Bank let it be known that it did not plan to substantially increase its purchase of the sovereign debt of the euro zone’s most distressed countries. Combined with reports that EU leaders were still at odds over whether to create a massive bailout fund for debt-ridden countries, stocks dropped sharply across Europe and in the United States.

Loss of faith in the euro, and the deepening recession in Europe, would have worldwide ramifications. “Should the crisis deepen and spread further to the larger European economies, transmission to Canada could become more severe,” Bank of Canada Governor Mark Carney said.

“An adverse outcome for Europe,” he added, “would also raise the risk of a significant impairment of funding conditions for Canadian institutions.”"

"Royal Bank of Scotland Group Plc (RBS), Barclays Plc (BARC) and HSBC Holdings Plc (HSBA) cut $15.2 billion of investments in Greek, Italian, Irish, Portuguese and Spanish sovereign debt as investors punished companies with large holdings."

.................2A) RBS Slashes Holdings of French Bonds More Than Southern Europe

"The eight largest prime U.S. money- market mutual funds cut holdings in French banks by 68 percent in November, shifting investments to Swiss, Swedish, Canadian and Japanese banks.

French bank holdings declined by $11.7 billion to $5.56 billion, according to an analysis of fund disclosures by the Bloomberg Risk newsletter. The eight funds have reduced French bank debt by $76.8 billion in the past 12 months.

The decline in short-term lending has forced French banks to increase their borrowing from the European Central Bank more than four-fold over the last four months, and adds to woes at lenders seeking to meet tighter capital requirements. European Union banks must raise 114.7 billion euros ($152.8 billion) as part of measures to respond to the region's sovereign-debt crisis, the European Banking Authority said yesterday."

Headlines:

 
  1. Italian borrowing rates jump on ECB comments
  2. Dutch Central Bank Cuts Growth Views, Sees Higher Unemployment
  3. Euro-zone economy may contract in 2012, ECB says
  4. Greece’s Papandreou Calls Crisis Response ’Too Little Too Late’
  5. Austria may face recession in 2012, central bank says
  6. Moody's Downgrades Three Big French Banks On Funding Constraints
  7. Japan third-quarter GDP growth lowered
  8. IMF Says Worsening Crisis May Force Hong Kong to Back Banks
  9. Germany facing prospect of bank bailout
  10. Bank Of Korea Cuts GDP Outlook On Europe Woes
  11. Central bank lowers German 2012 growth forecast to 0.6 pct; exports slowing in October
  12. Italian anarchists claim letter bomb, hint at more
  13. US household wealth takes biggest hit since 2008
  14. Tepco eyes $39 billion bailout in move towards nationalization
  15. EU Backs $267 Billion for IMF as Draghi Hails Fiscal Pact
  16. Banks May Not Refinance $156 Billion of U.K. Property Loans
  17. California Revenue Trails Budget by $1 Billion, Controller Says
  18. German, French Slowdown Raises Risk of Europe Recession: Economy
  19. NJ's debt grows by 3 percent to $38.1 billion
  20. Czech budget deficit balloons due to stalled EU funds
  21. In Detroit, Drastic Steps To Avoid Bankruptcy
  22. Detroit nears bankruptcy (The Economist)
  23. Finland threatens to exit ESM if unanimity dropped
  24. Govt cuts growth f'cast, warns on balance of trade, deficit target (India)
  25. School superintendents in San Jose fear state triggers will kick in next year

.............Italian 10 year bond yields are back up to 6.66% and Spanish 10 year bond yields are back up to 5.88%

dcm's picture
dcm
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Big Oil Energy Bonanza

What a joke. Other than the extreme dangers, extreme water volume, and extreme energy required, things do look great  

DRHolden's picture
DRHolden
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dcm wrote: What a joke.
dcm wrote:

What a joke. Other than the extreme dangers, extreme water volume, and extreme energy required, things do look great  

Agreed!

maaa's picture
maaa
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Posts: 26
Re: Mystery Company Is Rapidly Acquiring U.S. Gun and Ammo Manuf
Internet Rumors About Cerberus, Freedom Group Are Patently False
 
Friday, October 14, 2011
 

Recently, an old rumor regarding Cerberus--the private equity firm that owns Freedom group, a holding company that in turn owns a number of firearms manufacturers, including Remington, Marlin, Bushmaster, and DPMS--was in some way tied to George Soros.

This rumor is completely false and baseless.

NRA has had contact with officials from Cerberus and Freedom Group for some time.  The owners and investors involved are strong supporters of the Second Amendment and are avid hunters and shooters.

In reality, at no time has George Soros ever been a part of the ownership group of Freedom Group or Cerberus, and as a privately traded corporation, there is no possibility that he will be in the future.

http://www.nraila.org/Legislation/Read.aspx?ID=7136

AND of relevant interest....

The former owner of Bushmaster has passed his noncompete time period and has now started up a new company in the same factory with same employees.

Led by Richard Dyke, former owner of Bushmaster Firearms Inc, and located in the Windham Business Park where the old Bushmaster was located, a group of investors felt there was a great opportunity for a new company when Bushmaster Firearms International LLC decided to relocate the company to another state and lay off all its employees. These employees in many cases have 25 years of experience in making one of the finest rifles in the world.

PersonalSecurityZone.com now has Windham Weaponry AR15 rifles in stock, including California OK* models that are also legal in The Golden State with bullet button and non-hicaps.

All products in stock by Windham Weaponry...

Mary Kay at http://PersonalSecurityZOne.com

saxplayer00o1's picture
saxplayer00o1
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European CEOs Move Cash to Germany In Case of Euro Breakup

 

European CEOs Move Cash to Germany In Case of Euro Breakup

Wendy S. Delmater's picture
Wendy S. Delmater
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Jon Stewart in rare form

Wow - he nails it with "Arrested Development". Great videos.

osb272646's picture
osb272646
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Posts: 120
thanks, aufrance

Thanks for your interjection regarding the Cerberus investments in firearms and ammunition manufacturing. 

My immediate thoughts when reading the original article were that it's not that difficult to get into the gun making business, so if someone was trying to corner the market, it would be like corralling snakes.  This was proven by your example of Personal Security Zone . com.   Secondly, the NRA doesn't seem to be concerned, and the NRA isn't some hayseed outfit.

I personally think an investment firm like Cerberus getting into the firearms industry will result in a stronger second amendment.  They'll be more capable of fighting left wing lawsuits designed to intimidate them into submission.

It's always nice to have someone with background information to inject a modicum of objectivity into these very emotional topics.

 

 

 

 

 

Arthur Robey's picture
Arthur Robey
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Again I am greateful for the

Again I am greateful for the video links to Dr Martenson's talks. It is in my nature to shoot holes in peoples models of reality, but his seems bullet proof.

Here are my comments. There is nothing magical about the number 0 when it comes to growth. The pension funds (Including my confiscated contributions) are going to contend with minus signs. I am going to have to work until I join them rattling bones.

On the ABC this morning I heard about the history of double entry book-keeping. The conversation ended with the thought that in future we will need triple entry book-keeping. With the Environment being the third legal entity. (If we can give a company legal status, then we can give nature legal status). The law will have to speak on behalf of the environment.

For instance. Norway might want to play "Last Man Standing" and keep it's oil. The oil that it keeps in the ground would then be entered Norways Books as an asset. When Norway sells the oil it comes off their balance sheets and the gold they receive is entered as a positive on their ledger.

Perhaps gold is no more a store of wealth than cowrie shells are. If money is a way of keeping score then it is no more than information. Ay, and there is the rub. Who controls the keyboard?

Arthur Robey's picture
Arthur Robey
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Posts: 3936
TEDex Pulled.

TEDex Ft Lauderdale 10th Dec. has been pulled.

All of it. No explanation.

Including Ruby Carots talk on Cold Fusion.

Ruby did a presentation video that she used to get access to the microphone.

http://www.youtube.com/watch?feature=player_detailpage&v=0iJNsq4S2io

My paranoia has flared up. Was the whole shebang pulled to buy someone time?

RJE's picture
RJE
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Posts: 1369
Chris, you have a presence...

...while doing physical interviews that come off stately. I would imagine that if Thomas Jefferson was sitting in the room with you during this interview he just might have shouted out: " you are singing to the choir my good fellow". Honestly Chris, you are one special Man that has a voice that will be heard. Prepare for higher expectations of yourself because the public will demand it. As a leader you must rise to the challenge. My advice, find others that duplicate your views and values so you have ample time for your family. NEVER compromise your time for your family. Regards BOB

RJE's picture
RJE
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Posts: 1369
Arthur, you spoke of your

Arthur, you spoke of your paranoia coming out, we are all paranoid for sure. It may not matter what we do to protect ourselves because be it a neighbor, community, State or Federal Government, they will ALL want what you have, and will confiscate it by any and all means necessary. No doubt about that. My plans, talk softly and carry a Big stick.

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